Case
Studies

Cross border migration of Chinese operations

Joint Venture trouble

Privileged access to the China market

Due diligence of a Chinese town

Cross border migration of Chinese operations

Shanghai bridge, street photography, Winter in Shanghai, Chinese man on a motorbike with winter outfit.

Our client

Our client manufactures high-quality microfiber accessories as a supplier to top lifestyle brands.

The brief

The economic situation in China becoming increasingly challenging for foreign manufacturers, the client decided to migrate part of its operations to Cambodia.

How we helped

Our team assisted the client by rearranging its corporate structure, solving Chinese employment matters and providing support for cross-border tax and accounting issues. The client continues in China with a considerably downsized operation.

Joint Venture trouble

Nanjing road, Shanghai, Winter, street photography

Our client

Our client is a manufacturer of indoor office infrastructure.

The brief

The client was attempting to terminate a joint venture but ran into a dispute with the Chinese minority partner, who had de facto control over the factory where the client’s products were manufactured.

How we helped

The dispute led to the Chinese side preventing our client from retrieving machinery owned by them from the factory. We stepped in to negotiate with the joint venture partner and the local workforce and provided the client with a solution acceptable to both sides. The machinery was subsequently released, and the joint venture terminated.

Privileged access to the China market

Shanghai bridge, street photography, Winter in Shanghai, Chinese man on a motorbike with winter outfit.

Our client

The client is a leading human resources (“HR”) company looking to enter the Chinese market.

The brief

The client was looking to acquire a Chinese HR company, despite regulations restricting foreign investors to owning just 49% of a Chinese subsidiary in this industry.

How we helped

We identified a small local HR company in Hong Kong, which we helped the client to acquire. Under the Closer Economic Partnership Agreement (“CEPA”) between Hong Kong and China, a Hong Kong based HR company would at the time be able to own 70% a Chinese subsidiary in the same industry.

After the acquisition of 70% of a Chinese HR company, we also helped the client to obtain all relevant approvals. This complex project allowed the client to achieve a strong competitive positioning in the Chinese market.

Due diligence of a Chinese town

HongKong building, outside facade, balconies, laundry hanging outside.

Our client

The client is a leading international water supply and wastewater company

The brief

The client was interested in acquiring a local water supply plant owned by a Chinese town.

How we helped

The client asked us to perform a due diligence of the plant and the surrounding town, in particular with regard to local licenses and ownership of the plant and the local water distribution network.

We made a team available and performed a detailed study of local regulations, patents and other intellectual property and the power of the town to enter into a binding agreement. On completion of the due diligence the client decided against the transaction, in particular because of problems with the ownership of the infrastructure and intellectual property.